Top pharma names should be looked at, says Basant Maheshwari

Basant Maheshwari of Basant Maheshwari Wealth told CNBC-TV18, "A high quality bluechip normally doesn’t fall more than 40-50 percent. All these pharma names - the top quality, they have all fallen 40-50 percent from their all-time highs. So, unless the company is folding up like in the case of Unitech they don’t fall more than 40-50 percent. So, they are all down 30-40 percent from the top."

"So, if you have patience and if you are not too much worried about quarterly returns and performance every quarter, every week, every month, I think pharma should be looked at but start from the top notch companies, the bluechips. You can just take the top end names, not a recommendation, I am just telling for the sake of analysis, take Sun Pharma or Lupin or whatever or Aurobindo Pharma. Aurobindo I think went to Rs 550 and now it is back at Rs 700-750 thereabouts."

"So, you just buy these stocks and keep them because they have fallen 40 percent from the top. These companies don’t go down to zero, they are world class companies and they are going to get their way back. However the big bounce isn’t coming very soon because they have had six years of terrific growth. So, after six years of growth, you fall to the ground, you lay there, you catch your breath, you take some rest and then walk, they never run again that is what I feel because they ran so hard. So, they will just walk," he added.